Swedbank reported an increase in first quarter profits at all its Baltic branches. Swedbank Estonia’s Q1 profit jumped by 23 percent y-o-y to €45.5m. The Latvian unit, driven by income growth and higher net recoveries, reported a profit of €28m, up 19 percent y-o-y. The bank’s Lithuanian branch, meanwhile, reported a 3 percent y-o-y increase in profit for the period, netting €22m.
“Despite operating in an environment of negative interest rates, Swedbank Lithuania recorded a positive performance during the first quarter of 2016. Household demand for mortgages and consumer financing continued to grow and good economic conditions encouraged business investment,” said bank CEO Dovile Grigiene.
Swedbank Estonia’s loan portfolio increased by 1.5 percent to €6.56bn in Q1. Its lending market share at the end of February was 38.5 percent. “Our strong operating result for the first quarter shows that Estonian people and businesses continue to take a positive look to the future and feel confident. The volumes of both the corporate and private loan portfolios increased in the first quarter,” said Robert Kitt, head of Swedbank’s Estonian unit.
